PURPOSE: This rule sets forth the procedures to be followed for obtaining release from bonding requirements and specify under what condition the director may revoke the license held by a wholesaler for a period of one year.

1. (1) A cigarette wholesaler is eligible for release from the licensing requirement to maintain a surety bond. In order to be released from the bond requirement, a wholesaler must file a written application with the director of revenue. Upon application, the director shall review the reporting and payment history of the wholesaler to determine whether the wholesaler has maintained satisfactory tax compliance for the five (5)-year period immediately preceding the date of application. All wholesalers who make application for release from the bond requirement and who have maintained satisfactory tax compliance for a five (5)-year period shall be released from the bond requirement. The director shall notify the wholesaler of the release from the bond requirement; the date of notice shall be the effective date of the release from the bond requirement.
2. (2) If after release from the bond requirement a wholesaler fails to file monthly reports or pay tax due within fifteen (15) days from the last day of the month in which the purchase of cigarette tax stamps or decals was made, the director may revoke the license held by the wholesaler (subject to other provisions of Chapter 149, RSMo) for a period of one (1) year.

AUTHORITY: sections 66.380 and 210.320, RSMo Supp. 1993 and 136.030, 136.120 and 149.025, RSMo 1986.* Original rule filed Nov. 18, 1986, effective March 12, 1987.

*Original authority: 66.380, RSMo 1967, amended 1993; 136.030, RSMo 1945, amended 1947, 1949, 1965; 136.120, RSMo 1945; 149.025, RSMo 1974, amended 1982, 1983, 1986; and 210.320, RSMo 1939, amended 1969, 1976, 1978, 1993.